Scottish first-time buyers can now apply for £10,000 deposit scheme

The Scottish government will take an equity share in the property in the form of a security, although buyers will own and have full title to their home. No monthly payments or interest will be charged to the government, with its share normally repaid when the property is sold or another payment event is triggered.

Shirley-Anne Somerville, cabinet secretary for social justice and housing, said: “We know how hard it is to get that first foot on the property ladder and the opening of this fund is a direct response to stories I have heard from so many people who are keen to buy their first home.

“The First Homes Fund is part of a broader programme of action, supported by a record £4.9bn investment in affordable housing over the next four years.

“We promised to act to make life easier for many and fairer for all and, through the First Homes Fund, we are delivering on that promise.”

The scheme was first announced last month, drawing criticism from Shelter Scotland, which said it was “disappointed” that the government’s first major housing intervention was focused on first-time buyers rather than people experiencing homelessness.

Gordon Llewellyn-MacRae, assistant director at Shelter Scotland, said at the time that the government should not “repeat policies that do nothing to help the 10,480 children trapped in temporary accommodation”.

Homes for Scotland welcomed the reopening of the fund, which it said had been a key ask ahead of the election.

Jane Wood, chief executive of Homes for Scotland, said supporting first-time buyers was “essential”, both to address Scotland’s housing need and to stimulate wider economic growth.

She said the fund could help unlock “investment confidence across the sector”, particularly in areas where development viability is more marginal, and support housing delivery across tenures.

The lenders signed up to the scheme so far are Leeds Building Society, Scottish Building Society, Glasgow Credit Union, NatWest and Lloyds Banking Group. The Scottish government said it expects more lenders to follow in the coming months.